Dollar Snaps 3-Day Gain as Wider Trade Deficit Damps Growth Bets

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The dollar snapped a three-day gain after the U.S. trade deficit widened in March to the highest level in more than six years, raising doubts that the economy was gaining traction.

The data, which showed the trade gap increasing the most in 18 years, followed a report last week that indicated U.S. growth stalled in first quarter. The focus turns to April payrolls data on May 8, as the Federal Reserve weighs whether the economy is strong enough to withstand the first interest-rate increase since 2006.

The Bloomberg Dollar Spot Index, a measure of the U.S. currency against 10 major peers, fell 0.4 percent to 1,168.81 at 5 p.m. in New York after earlier gaining 0.4 percent. The dollar dropped 0.4 percent to $1.1185 per euro.

The yen gained for a second day, adding 0.2 percent to 119.86 yen per dollar.

Source : Bloomberg